ProTracker Advantage User Manual

RMD 10-Year Rule Exceptions (2020)

What are the Exceptions to the 10-Year Rule under the SECURE Act?
The SECURE Act was signed into law on December 20, 2019. The Act established a 10-Year Rule as the maximum payout period for inherited retirement accounts that have been inherited from Participants dying after 12/31/2019, with a few Exceptions.
The Exceptions apply to Eligible Designated Beneficiaries (EDBs).

Eligible Designated Beneficiary (EDBs)

Created under the SECURE Act of 2019, Eligible Designated Beneficiaries (EDBs) are defined as follows:
The 10-Year Rule Exception checkbox facilitates handling the Exceptions under the SECURE Act.
When an Exception no longer applies, uncheck the 10-Year Rule Exception checkbox in the Account Flags panel on the Account Details screen,
or on the Required Minimum Distribution Calculator screen, Step 5, Current Asset Holder panel.
The 10-Year Rule Exception checkbox is displayed in these two locations, but it is the same checkbox.
Annually, advisors need to review the applicability of the Exceptions to each account being distributed under the Exceptions provisions. A list of Client accounts that have the 10-Year Rule Exceptions may be viewed by clicking on Operations > Accounts > RMD > RMD Exceptions tab.
When the calculation Method is Recalc or N-1, the Yrs Left column, the Gradual column, and the Expiration column do not apply.
RMD Resources
RMD Client Overview (includes index of RMD Help Articles)
10Year Rule
10 Year Rule